QUESTION: 77

The Articles of Association of Dee Ltd state that the company has power to borrow money and that the directors have authority to borrow up to £200,000 on behalf of the company. The board has resolved to purchase a piece of land for £300,000. The Midwest Bank plc has agreed to make a loan of £250,000 to Dee Ltd to acquire the land. Which of the following statements is correct?

The loan is void as Dee Ltd has acted ultra virus.
As the directors have exceeded their authority, the bank cannot enforce the loan against Dee Ltd.
As the directors have resolved to obtain the loan they have acted in accordance with the company's constitution.
The loan is ultra virus the directors who will be personally liable for any loss caused to the company, unless their actions are ratified by the shareholders.

Answer(s): D

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QUESTION: 78

One of your colleagues has just been poached by a competitor. You have reason to suspect that he has provided his new employer with sensitive information about your company that could disadvantage your employer. This affects the CIMA Code of Ethics fundamental principle of:

Responsibility
Respect
Confidentiality
Cooperation

Answer(s): C

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QUESTION: 79

Completing work within established deadlines reflects the personal quality identified by the CIMA Code of Ethics as:

Responsibility
Accuracy
Timeliness
Tardiness

Answer(s): C

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QUESTION: 80

In a situation where a professional accountant needs to choose in whose interest he or she is to behave and act, which of the following interests should he or she put first?

Employer's interest
Client's interest
CIMA's interest
Public interest

Answer(s): D

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QUESTION: 77

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QUESTION: 80